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DIGGERS & DEALERS PREVIEW

within a 150km radius of Southern Cross. incorporating Barto’s M77/1049 tenement (including Pilot) and
Altan has emerged as a potential future supplier of third-party the equivalent or greater part of Altan’s surrounding P77/4341
ore after entering into an exploration and mining agreement with permit.
Barto over the historic Pilot mine which Stephen believes could Altan will meet all costs associated with exploration,
be the catalyst for unlocking a series of stranded production development and mining activities at its sole discretion with no
opportunities north of the Southern Cross townsite. minimum expenditures required. Profits from any future mining
“In signing this joint agreement, we have the ability to define and processing via the Marvel Loch processing facility are to be
resources and reserves at Pilot and the opportunity to then shared on a 50:50 basis.
bring them into production without having to build a standalone No exploration work has been carried out on the Pilot licence
mill,” Stephen said. since Troy Resources Ltd ceased mining there in 1994.
“This is an enormous opportunity for the company to create Stockpiled ore adjacent to the open pit looms as a possible first
something whereby we can self-fund exploration on an area option for toll-treatment at Marvel Loch.
that is just desperate for a serious exploration spend. Stephen said his company was keen to drill under the mine
“One of the things that is holding a lot of junior companies back, to test its high-grade potential at depth. Pilot was originally
despite these great markets, is undercapitalisation. Balancing developed as an underground operation by a subsidiary of
up issuing new shares and diluting existing shareholders with Western Mining before Troy took over and recovered almost
getting work done on the ground is always the challenge for 30,000oz gold from the open pit.
junior explorers. If we can put ourselves in a position where “There’s some spectacular grades from historical drilling going
we can fund a substantial exploration programme through the back to the 1950s which we need to follow up,” he said. “We’ve
development of cash flow by partnering with a local mill, that’s got to get the drill rigs back in there and turn that into what
a really unique opportunity and something that gets us very should be our first maiden resource.
excited.” “We’ve got what we think is the best compilation of all the best
Under the terms of the five-year agreement signed in late historical data and drill logs. We think we’re in a very unique position
June, both parties have defined an area of mutual interest to accurately target some of the extensions to these mines.”

Companies with ground in
and around Southern Cross
Altan Rio Minerals Ltd
Barto Gold Mining Pty Ltd
Bullseye Mining Ltd
Classic Minerals Ltd
Enterprise Metals Ltd
Firefly Resources Ltd
Torque Metals Ltd
Valor Resources Ltd
Xantippe Resources Ltd

Southern Cross production history

Deposit Output (oz) Grade (g/t)
Copperhead 932,256 3.75
Corinthian 58,200 5.9
Pilot 40,700 4.15
Hopes Hill 93,280 1.8
Golden Pig 692,219 6.05
Fraser 748,294 4.76
Marvel Loch 2,298,887 2.5
Nevoria 662,198 3.74
Yilgarn Star 1,265,737 4.51
Great Victoria 368,212 2.74
Bounty 1,100,000 5.7

Altan Rio chairman John Jones

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